Monday, June 25, 2007

STI might test ema20 days tmr

First the good news...

Swiber clinched a US$31 million Letter of Intent to provide offshore installation works in M'sia. This pushes the order book for 2007 to be US$228.3 million. Price for swiber subsequently rose up to around $0.10 before coming to close 0.080 at $2.36. This is good news for swiber as deals kept coming in. Order book for 2007 already exceeds 2006, so this financial year should be even better than last year. Action: Hold long term.

Not so good news..

After dow dropped 185 pts last fri, STI followed suit to go down 35 pts to close at 3580. This is quite close to my first support lvl for STI based on the chart I did last night. Pending on how Dow performs tonight, we might see STI rebounding immediately tmr. If not, the next support level is 20 points down at the very important ema20 days support of 3560. I read a research report by CIMB, which advices people to sell on strength because STI is undergoing a bearish rising wedge.

Here's the site:

TA is such that given different time frame, we can see different things. The channel trending that I posted last night was based on a short term time frame. The research report by CIMB was based on a longer term (a few months), hence it should be more significant.

Maybe this weekend then I'll do a more detailed analysis on STI with possible support level for this impending correction. Dateline for this correction is before 4th week of July (where the 2 trendlines converge).

Pac andes undergoing downtrend down, short term only. Looks set to break ema20 days, which is even better, cos I will be down there to collect at low price. Funny feeling, when you want your stock to drop so you can accumulate more at cheaper prices, hahah! Oh, the effect of reading benjamin graham and his idea of margin of safety!

I heard some people are shorting pac andes, all the better! My entry point for Pac andes is 0.915/0.920, which happens to be 38.2% fibo retracement level too. Should provide enough support to prevent it from going further down. I'll wait patiently for 0.920 to be reached.

Wanted to collect more yongnam around 0.405 but it didn't materialise. I thought in the morning, it even broke out of ascending triangle when the prices went above 0.435 (0.445 intraday high). Since it didn't close above 0.435, the price still stays within the ascending triangle, so it's still bullish. I believe it's the general market sentiment that prevents yongnam from closing above 0.435. Nevertheless, I'll wait patiently to collect. I'm more disciplined when it comes to buying now, not like the time when i just whacked 20 lots for csc immediately after it resumes trade on winning IR contracts. Wait and wait for a safe price...protect capital first.

Construction stocks going down for short term... been up for the past weeks, should rightly should take a break.

Straits asia dropped 0.070 to close at 1.51. support level at 1.48 seems to be near. I hope it won't come close to that, if not my action plan will kick in. Power of rising bear wedge, might happen to STI too, beware!

Dow +74 now, europe mainly red. Tmr might see STI testing ema20 better hold!!

Genting close at 0.990 today. So glad I sold at 1.02 on last fri. Get 40 plus profits better than losses right? I'll use the 5k I released from genting to invest more...I'll wait patiently for the right price.